Braskem Idesa announces the signing of an investment agreement with Advario for a joint 50% stake in the construction and operation of an ethane import terminal in Mexico, called "Puerto Mexico Chemical Terminal".
The project's total investment will be approximately US$400 million, construction should begin in July 2022, and it is planned to be completed by the end of 2024. The Terminal will be developed in the municipalities of Coatzacoalcos and Nanchital, in the state of Veracruz. The 10-hectare site is in the northern part of the Pajaritos lagoon and will be connected to Braskem Idesa's complex via an 11-kilometer pipeline. A new jetty will also be built in the Pajaritos lagoon with an exclusive area for operations with cryogenic ethane This important infrastructure project will be part of the Interoceanic Corridor of the Isthmus of Tehuantepec, one of the Mexican government's main development initiatives.
Advario, a recent carve-out from Oiltanking, is a Dutch company specialized in designing, building, financing, and operating storage and logistic infrastructure for bulk liquid products, including cryogenic gases. Its history and experience span over 50 years. Advario's portfolio comprises world-scale storage terminals located strategically in key hubs across the globe. Advario focuses on the individual needs of its customers and provides custom-made infrastructure for each project, thereby always with a strong focus on health, safety, and the environment, sustainability, and reliability of services when operating its facilities.
"This partnership allows Braskem Idesa to work with one of the most distinguished companies in the sector, adding technology, experience, and recognized safety excellence to TQPM's operations. We are delighted with the announcement of this joint venture,"
Stefan Lepecki, CEO of Braskem Idesa
Bas Verkooijen, CEO of Advario, commented regarding the partnership with BI that "Advario is proud to partner with Braskem Idesa on this project. The development of the Puerto Mexico Chemical Terminal is another important example of Advario's commitment to partnering with leaders in the industry and focusing on growth opportunities within chemicals, gases, and new energies. We look forward to a long and successful collaboration and to bringing our depth of expertise to this exciting project."
Braskem Idesa highlights that Advario will add value and bring extensive experience to ensure the success of this world-class project. The ethane import terminal will be a major infrastructure for cryogenic ethane to be supplied to Mexico and will provide the additional raw material that Braskem Idesa needs to operate at full capacity, thereby increasing the availability of this hydrocarbon and the competitiveness of the entire Mexican petrochemical and plastics industry.
The TQPM is a greenfield project, as it will be constructed entirely in an area without existing infrastructure. The project will positively impact the city of Coatzacoalcos and Nanchital in terms of job creation, contracting local suppliers of goods and services, and creating new logistics infrastructure for the region and the state of Veracruz. The Terminal is expected to generate approximately 2,000 jobs during construction, and the increased availability of ethane will also support other important production chains in the country's petrochemical industry.
About Braskem Idesa S. A. P. I
Founded in 2010, Braskem Idesa is a Mexican company formed from the partnership of Braskem the largest petrochemical company on the continent producing thermoplastics, and Grupo Idesa, a leading Mexican petrochemical company. Together, they developed a petrochemical complex to produce ethylene and high- and low-density polyethylene in the municipality of Nanchital, Veracruz in Mexico. The facility, which began operating in 2016, produces one million fifty thousand tons per year of ethylene and polyethylene.